Activist RBR says Credit Suisse results show more action needed

Credit Suisse CEO Says Volatility Products'Form a Useful Purpose

Credit Suisse CEO Says Volatility Products'Form a Useful Purpose

Credit Suisse on February 14 reported a 1.7 billion Swiss franc annual pre-tax profit from continuing operations compared to a 2.2 billion Swiss franc loss in 2016, on revenue which rose by 3 percent year-on-year to 20.9 billion Swiss francs. A previously flagged 2.3bn franc hit from United States tax reforms prevented a return to profit after three years of cost-cutting.

The bank's shares rose more than 3 percent.

Credit Suisse reported a 2017 full year loss of CHF983 million, that's below expectations of around a CHF1.1 billion loss.

Net revenues were 5.189 billion francs, compared to 5.181 billion francs in the prior year.

That's a welcome change from the fourth quarter, when revenue from fixed-income trading fell 4.7 percent at Credit Suisse, while equities trading slumped 22 percent. It's pre-tax income, meanwhile, was CHF1.8 billion, compared with a loss of CHF2.3 billion in 2016. We are working hard to increase revenue and reduce cost.

"We believe that the 2017 results we are presenting today contain tangible evidence of the positive impact our restructuring efforts are having on the group's performance". Thiam said 2017 was a "crucial year" of delivery in its three-year restructuring plan.

The Board of Directors will propose to shareholders at the Annual General Meeting on April 27, 2018, that a distribution of CHF 0.25 per share be paid out of capital contribution reserves for the financial year 2017.

The current period of market volatility, sparked by inflation and interest rate worries is among the bank's concerns for the coming year.

Speaking to the media on Wednesday, Helman Sitohang, Credit Suisse's chief executive officer for Asia-Pacific, said that he could not give any further details.

The bank said market volatility - which was also behind the meltdown of its exchange-traded notes used to bet on stock market swings - was a double-edged sword.

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